Captive Basics
What Are the Key Elements of a Captive Feasibility Study?
What is a captive feasibility study? A feasibility study is a study undertaken to determine whether a contemplated risk financing program is feasible for a particular organization or group of organizations. A study, or a proposal for a captive feasibility study, should always begin by stating its scope and purpose. Read More
What Is a Fronting Arrangement and Why Do Captive Insurers Use Them?
An insurance pundit once observed that "fronting" is the same as "backing." That seemingly oxymoronic comment is not far off the mark in describing the relationship between a captive insurer and a fronting arrangement. Read on to find out more about fronting arrangements and captive insurance. Read More
What Is a Micro-Captive?
A micro-captive is a small captive insurance company that may be taxed under Internal Revenue Code § 831(b) and may pay tax on investment income only. What is a micro-captive? Read further to find out! Read More
What Is Captive Insurance?
What is captive insurance? A "captive insurer" is generally defined as an insurance company that is wholly owned and controlled by its insureds; its primary purpose is to insure the risks of its owners, and its insureds benefit from the captive insurer's underwriting profits. Read More